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Optimizing the Electricity Distribution System

 

Distributed generation and energy storage resources are envisioned as becoming valuable new elements of the future networked distribution system. Such distributed resources will complement the central and bulk power supply systems to effect net asset optimization. Distributed resource systems offer the potential for lower cost to the end-use customer, higher reliability and power quality, and high efficiency, especially in cogeneration configurations. At least 20GW of distributed resources are forecast for installation in the U.S. during the coming decade alone. However, the full potential of distributed power awaits further development in key areas of system architecture, notably storage and control. Storage capabilities are pivotal architectural elements largely missing from today’s power distribution system; their development would reduce price volatility, help protect against power quality problems, and help support integration of intermittent renewable resources on the grid. In addition to developing improved hardware, we foresee the growing importance of improved tools for understanding the interactions of distributed resources with the existing grid and development of control systems for large grids with a mixture of distributed and central generation.

As previously noted, power quality and reliability requirements are increasing for all market sectors, and a growth market has developed for “premium power” serving the most demanding customers dependent on sensitive electronic equipment. Similarly, customers with less demanding electrical equipment expect lower costs for power of the quality appropriate to their needs. The capability to differentiate service needs will likely persist through all sectors of the power market. We envision a supply side with the ability to deliver electric power of any waveform, quality, and reliability at a price providing competitive net value to the user. One means of creating this supply infrastructure is via strategically located grid-connected distributed resources. Further, technical innovations now on the horizon could make possible an entirely new level of power and information system integration. This in turn would allow the distribution system to operate as a comprehensive common carrier as retail competition expands and the convergence of energy and information services mature.